Wholesome Burger, Inc. budgeted 25,000 direct labor hours for producing 100,000 units. The standard direct labor rate is $6 per hour. During March, the company used 30,000 hours for producing 80,000 units and paid $6.25 per hour. Calculate the direct labor rate variance.

See below

Explanation:

Given the above information, we will apply the formula below to compute direct labor rate variance.

Direct labor rate variance =

(SR - AR) × AH

Stanadard (Rate) SR = $6

Actual Hour (AR) = $6.25

Actual Hour (AH) = 30,000

Then,

Direct labor rate variance

= ($6 - $6.25) × 30,000

= -$0.25 × 30,000

= -$7,500

= $30,000 Unfavorable

It is unfavourable because the actual rate is more than the budgeted rate.

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empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

im thinking a but im not 100% sure

explanation: